Monthly Archives: April 2016

Business Debt Collection Ideas

Business Debt Collection Ideas

business-ideaMany a time, business owners face the problem of customers not paying up the amount for goods sold. Phone calls, reminder letters, etc., are of no use as the customer is in dire financial conditions. In such a case, you can’t wait indefinitely to receive the money; this is where debt collection comes into play. It’s a very tedious and long drawn process, especially in case of business-to-business debt. Hence, it needs to be tackled with great care, as you don’t want to lose the customer. It’s not that they don’t understand the importance of paying up, it’s just that they could be in some kind of financial trouble. Moreover, there are several laws which punish malpractices in debt collection, so you need to be careful of that as well.

For Small Businesses

Small business owners find it quite challenging to collect money from their customers. But with some preparation and homework, late payments can be minimized, besides you will also know when to refer a customer to collections. You need to communicate with these debtors effectively and work with them, in their times of financial need, and who knows, they may become your lifetime clients. People who pay late can be categorized into three types – those who would like to pay but are unable to do so, those who intentionally delay so that they can simultaneously deal with several payments, and those who avoid payments intentionally.

The first two types of people genuinely want to pay, so you need to work with them and convince them to make a full or part payment. It’s important that you recognize the third category soon enough and take appropriate action including turning their accounts to a collection agency.

One rule of thumb which you should always apply is that you need to continuously communicate with your customers, till the time you are paid. Keep sending them the bills and re-bill them every month. It’s not necessary for you to wait till the month-end, instead make sure that you send notices whenever an amount is overdue.

Business-to-Business Debt

There are several important points which you should remember while going for debt collection. The first and the most important point is that you should never be rude and you must never seem to be harassing your customers. You need to make them aware that you are pursuing their case. Never call them more than once a day. Moreover, never ever threaten the person who owes you money or state anything which leaves a bad taste.

It’s important that you are direct in whatever you say. You need to also listen to what the customer has to say and make sure you never get personal with him. Your goal is not only to make the customer pay, but to retain him as well. So you should never make a call seem to be personally degrading and demeaning. The trick here is to remain calm, but maintain a sense of urgency.

If you find that a customer has a financial problem and is speaking the truth, then you can try and negotiate for the amount he or she can pay. You can consider an extended payment period, if the debtor agrees to make the payment by that time. Besides making phone calls, you can also send letters, so that you convey a sense of urgency. Make sure you save copies of correspondence which you have had with the customer. You can also opt to offer a discount so that you are able to recover some amount instead of losing all. You can do this if the amount accumulated is large enough and is not paid over a long duration.

Hence, there are several ways to recover your dues. But while making a call or sending a letter, make sure that you are polite and have an emphatic attitude so that you seem to care for the customer.

Guide to Liquidate a Business

Guide to Liquidate a Business

When you plan for starting and running any kind of business, along with the profit making strategies, you also need to think about what is to be done, if the business unfortunately goes into a substantial loss and there arises a need for dissolution. In such cases, liquidating a business may seem to be the last option left for disposing off the business formally and safely, without having any liabilities to be paid to the creditors.

In corporate terms, business liquidation is referred to as an exit strategy. However, the need for liquidation can even arise in a situation when the company is nearing bankruptcy or is going in heavy losses. In this process, all the company assets are sold, and the cash that is received is utilized in repaying corporate debts and liabilities of the creditors or capital providers. This debt repayment is done on the basis of priority with considering several factors. The assets that are to be sold include plant, machinery, real estate, equipment and tools, and inventory (if available).

Considerations for Liquidating a Business

It is not a process that can be thought of overnight. It needs a proper plan and considerations from all the parties involved in the management and running of the business. It is a last step to be followed in the dissolution of a company. It can only happen when the appropriate members and owners decide to close down the operations of the company.

After all the debs are paid off, if any cash remains; it is distributed among the members, owners, and shareholders. There are two types of liquidation, voluntary and compulsory; with the former one being initiated by the owners and shareholders, whereas the latter one is processed by any legal entity like the court of law.

Executing the Business Liquidation Process

To make the business liquidation process hassle-free, it is very essential that you take advice from a liquidator, an attorney, an appraiser, or may be also an accountant. These professionals will assist you to carry out the process smoothly. Then you will have to conduct a meeting with the top management, shareholders, capital investors, and other important members of the company to prepare a proper business liquidation plan.

Next, you have to work with the accountant and liquidator in accessing all the available assets, and ask the accountant to generate the necessary records and reports. Then, consult with the appraiser who will help you in determining a suitable value for your assets.

Also take advice from the attorney, in case there are any legal formalities involved. Prepare a list of the business debts and liabilities, and the creditors who are to be paid. Sell off the assets and keep a record of the finances available. The next step would be to discuss with the liquidator and prioritize the creditors.

Get in touch with the creditors in an appropriate order, and pay off your debts. If there are financial resources remaining after the repayment, the liquidator will then distribute the amount to the shareholders and owners. At this point, the business can be said to be formally dissolved.

If you do not want to hire individual professional advisers such as liquidators, attorneys, accountants; the best option is to take help from a liquidation company who specializes in dealing with such issues.

Tips to Become a Licensed Stock Broker

Tips to Become a Licensed Stock Broker

If you are keen for a career in finance and specifically, in the stock market, then working as a licensed stock broker can be one of the best options. It has to be noted that without proper license, indulging in broking activities is illegal. Though the requirements for a license can vary a bit from one place to another, most things required remain the same. Before we go through the education and training requirements of a licensed stock broker, let us know of their basic duties.

The job of a stock broker basically involves carrying out transactions of stocks for their retail as well as institutional clients. They earn brokerage on all buy and sell transactions which is their source of income. Most reputed stock brokers also provide good advice on investments and trading calls in the stock market which helps common investors make money. Many stock broking firms, lately, have diversified their business model by providing portfolio management/wealth management solutions to the clients. They also assist their clients while applying for initial public offerings of companies.

Get a Degree
The first step is to get your graduation/bachelor’s degree in a relevant subject. Candidates with a degree in fields such as accounting, finance, economics or business administration are most preferred by top employers. For this, you need to start preparations right from high school by doing well in subjects such as mathematics, physics, English and getting good scores in entrance test for graduate school.

Work as an Intern
In order to become a licensed stock broker, you need to be in constant touch with the world of stock broking, So, while in college, working part-time for a stock broking firm would be a good option. This will give you the much required practical exposure and more knowledge of your subject. If you do an internship at a reputed firm, you can get sponsorship for the Series 7 Exam which is a must for all stock brokers.

Take the Series 7 Exam
National Association of Securities Dealers is the authority which handles the Series 7 Exam. The Series 7 exam is also referred to as General Securities Registered Representative Exam. The exam consists of a total of 125 questions which you have to answer in two parts of the duration of three hours each. After clearing this exam, you can become a registered representative.

Take the Series 63/Series 66 Exam
After the Series 7 Exam, you need to pass either the Series 63 exam which is also known a Uniform Securities Agent State Law Examination or the Series 66 exam which is known as Uniform Combined State Law Examination. After clearing this examination, you can realize your dream of becoming a stock broker.

History of the Person
Educational qualifications, previous work experience and character of an individual are thoroughly assessed before granting a license to a stock broker. Character and criminal background check is extremely important because any unlawful activity done by stock broking professionals can affect the entire stock market and financial services industry. So, it is very important for these professionals to be honest and sincere towards their job.

License Fee
The license fee is $25 in the state of California. So, it is quite affordable, but the main point is that the fees need to be paid on time to be eligible for the license.

Initially, most stock brokers work in broking firms to gain expertise in the field. Later on, they can work as independent brokers by acting as a franchise for top broking companies. The salary largely depends on the educational qualifications, place of job and type of employer of the candidates. Salaries for stock brokers can range between $60,000 to $120,000 per year depending on their experience.

Stock broking is a good field for those who have good mathematical and analytical skills, decision-making ability and presence of mind. So, if you think that you have these qualities, then this job will help you achieve your life goals.

Alternative Careers for Lawyers

Alternative Careers for Lawyers

Lawyers are professionals who are considered best for handling various types of alternative jobs. This is due to the fact that the complexity of law and its various intricacies equip the m with skills that can be used for handling various types of jobs. The depth of knowledge and expertise are some of the most important factors that helps them succeed in other fields.

Legal Writing and Publishing Houses
Being a law graduate/post-graduate, you have great option for working in magazines, publishing houses, and research institutions as law writers. wherein, you have to research and write on subject matters related to law. Being a legal writer presents a host of career opportunities for those who are willing to work full-time as legal writers. You can contribute articles for freelance websites and work on an hourly basis on specific days. You also have the option for becoming a columnist in newspapers, journals, and magazines. Various law institutes also hire legal writers and editors, and so if you have some aptitude and passion for writing, this can be a creative job, testing your knowledge and writing prowess.

Consultancy Works
Knowledge in the field of law is used in almost every sphere of life, and being law consultants are great alternative jobs for lawyers. For those who have been working as lawyers for years, and wish to take break from their work, they can become legal consultants for corporate firms, offices, and marketing companies. As legal consultants, you can also advice lawyers on various cases and proceedings. Many lawyers take advice of expert legal consultants, and pay them decently for their views and legal advice. You can also create a website and offer online legal solutions to people’s queries and problems. With internet marketing becoming the norm of the day, there is immense potential for online consultancy, as it gives you a wider audience. Consultancy services are brilliant alternative jobs for attorneys who have some rich experience of the state laws and procedures.

Banking and Financial Laws
There is no dearth of jobs for lawyers in the banking and financial sectors, especially, if the lawyer has worked in income tax related assignments. Mutual fund, private equity, and various other fields, where there is scope for a large number of legal works, offer options for other careers. In the field of banking and finance, lawyers can work as risk managers, estate planning advisers, trust officers, financial planners, commercial loans officers, and mutual fund administrators.

Educational Field
There are opportunities in paralegal colleges and law institutes, where experienced law practitioners are hired for guiding students on career related matters, working in admission processes, and maintaining alumni relations. Being a law lecturer gives you the opportunity to share your knowledge and experiences with prospective law students.

The field of law is diverse, and every specialization has its own sub-branches and sub-specialties. This gives law graduates the freedom to exercise various options in many fields. Besides the above mentioned jobs, they can work in federal and provincial governments, arbitration, mediation, mergers and acquisition fields, where the need for legal experts is extremely crucial.